The Bangko Sentral ng Pilipinas (BSP) said it is reassessing its inflation outlook after Metro Manila approved a 12 percent minimum wage increase, double its initial expectation of 6 percent.
BSP Governor Eli Remolona Jr. said the central bank is studying the wage hike’s potential impact on inflation but stressed that it does not justify a 50-basis-point interest rate increase.
The BSP is also monitoring the possibility of similar wage adjustments in other regions that could add to price pressures nationwide.
Despite the risks, Remolona said inflation is still expected to return to the BSP’s target range of 2 to 4 percent within two years.
The central bank will review new economic data in August before deciding on any further monetary policy adjustments.
Source: PhilNews24 | July 19, 2026
BSP REACTS TO UNEXPECTED 12% WAGE HIKE IN METRO MANILA
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